THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION: In examining the determinants of income,data were collected regarding the characteristics of 45 adults,and the regression Y = β 0 + β 1 X 1 + β 2 X 2 + β 3 X 3 +ε was used,where Y is the annual income (in thousands of dollars),X 1 is the person's age,X 2 is his/her years of education,and X 3 is a dummy variable = 1 if the adult is female. -If you get = 26.3 + 1.38x₁ + 2.98x₂ - 0.76x₃+ 0.34(x₂ ∙ x₃)when you run the regression,how would you interpret the coefficient on his/her years of education? A)For each additional year of education,women on average earn $420 less than men. B)For each additional year of education,women approximately earn $1,100 less than men. C)For each additional year of education,women on average earn an additional $3,320. D)For each additional year of education,women approximately earn $340 less than men.

Question

Quizplus · Accepted Answer

The Answer is A